Consumer Constraint
As house prices decline, owners feel less wealthy and home equity shrinks, making borrowing more difficult.
Some developers expect demand may stabilize following a poor selling season. Lennar Corp., the third-largest U.S. homebuilder by revenue, last week said second-quarter sales fell from a year earlier and home orders were little changed, while the average price climbed. The 2010 orders were boosted by a federal tax credit for homebuyers that required contracts be signed by April 30.
"While it's now well-documented that the expected spring selling season of 2011 simply did not materialize, it is beginning to feel like the worst days of the housing market are getting behind us," Chief Executive Officer Stuart Miller said during a conference call with analysts on June 23.
*T
============================================================
1-months 3-months 1-year 2-years 3-years
earlier earlier earlier earlier earlier
============================================================
US Composite-20 0.66% -1.36% -3.96% -0.30% -18.32%
------------------------------------------------------------
Washington DC 3.01% 2.85% 4.03% 11.63% -7.23%
San Francisco 1.70% -1.00% -5.54% 11.46% -19.80%
Atlanta 1.65% 1.59% -3.54% -3.29% -17.53%
Seattle 1.63% -0.20% -6.89% -9.53% -24.74%
Denver 1.46% -0.33% -4.06% 0.14% -4.80%
Cleveland 1.19% -1.51% -6.76% -0.39% -10.83%
New York 0.77% -0.95% -2.79% -3.82% -15.69%
Dallas 0.47% -0.62% -4.05% -0.80% -5.86%
Minneapolis 0.45% -6.47% -11.15% -2.35% -23.91%
============================================================
1-months 3-months 1-year 2-years 3-years
earlier earlier earlier earlier earlier
============================================================
San Diego 0.40% -1.61% -4.27% 6.97% -14.43%
Los Angeles 0.26% -0.99% -2.08% 5.54% -16.92%
Portland 0.13% -2.18% -9.17% -9.54% -24.03%
Phoenix 0.09% -1.16% -8.81% -3.92% -37.79%
Boston -0.20% -3.36% -4.23% 0.42% -7.32%
Miami -0.21% -3.05% -5.55% -6.03% -31.65%
Charlotte -0.32% -2.61% -6.57% -8.65% -17.75%
Tampa -0.40% -1.98% -7.75% -9.93% -29.15%
Chicago -0.41% -4.89% -8.56% -10.01% -26.80%
Las Vegas -0.73% -2.78% -6.18% -14.17% -41.78%
Detroit -2.91% -7.23% -7.48% -10.27% -33.08%
============================================================